Hindustan Aeronautics is buzzing today morning, opening 3% higher at Rs.1098 and going up to an intraday high at Rs.1113. Its 20% UC for the day is at Rs.1281.10.
The stock price has reacted positively to the news that it has placed an order of for $716 million or around Rs.5375 crore for 99 F404-GE-IN20 engines and support services with GE Aviation, the USA to power the Tejas Light Combat Aircraft.
The contract was signed on Tuesday at HAL Corporate Office. Ordering of the engines, marks a major milestone in the execution of 83 LCA contract with IAF.
The company said that it is working closely with GE for its support to pursue the export potential of LCA and also to supply spares to the global supply chain of GE 404 engines.
The co-operation will be further enhanced with the manufacturing of GE F414 engines in India for the upcoming LCA MkII program.